Guillaume Rosenwald Deputy Managing Director of insurance activities Macif ( France ) Friday, 3 September 2010
MACIF GROUP
From 1960 to the present day MACIF Macif established in motor insurance Chairman : Gérard Andreck Managing Director : Roge...
Commitment towards solidarity MACIF Macif is a mutual insurance company with no intermediaries  Macif is committed to the...
Breakdown of Group Turnover (2009) DIVERSIFIED ACTIVITIES 33 % Motor Health, Disability & Life 42 % 9 % Savings 10 % Home ...
MACIF GROUP MAIN PROJECTS Start-up of our banking offer : 2 nd  half of 2010 Strategic alliance Macif/Maif/Caisse d’Epargn...
MACIF GROUP MAIN PROJECTS Creation of a partnership (SGAM) between Macif/Maif/Matmut :  Sferen perpetuate the mutual insur...
MACIF GROUP European partnership with mutuals
Direct settlement agreements in France Guillaume Rosenwald Deputy Managing Director of insurance activities, Macif France ...
3.9.2010 12th Hydra meeting – G. Rosenwald <ul><li>1/ Direct Settlement Agreement objectives. </li></ul><ul><li>2/ Require...
3.9.2010 12th Hydra meeting – G. Rosenwald <ul><li>Improve claims settlement services, time, quality and innovation. </li>...
3.9.2010 12th Hydra meeting – G. Rosenwald <ul><li>Economy  : </li></ul><ul><li>Approaching cost neutrality, </li></ul><ul...
3.9.2010 12th Hydra meeting – G. Rosenwald <ul><li>The “agreed accident statement” has been used by she insured since 1964...
3.9.2010 12th Hydra meeting – G. Rosenwald « Indemnisation et Recours des Sinistres Automobile, IRSA »   Quick description...
3.9.2010 12th Hydra meeting – G. Rosenwald « Indemnisation et Recours des Sinistres Automobile, IRSA »  Benefits : <ul><li...
3.9.2010 12th Hydra meeting – G. Rosenwald « Indemnisation et Recours des Sinistres Automobile, IRSA »  Limits : <ul><li>E...
3.9.2010 12th Hydra meeting – G. Rosenwald « Indemnisation et Recours des Sinistres Automobile, IRSA »  Conclusion Possibl...
3.9.2010 12th Hydra meeting – G. Rosenwald <ul><li>Creation of “agreed accident statement” </li></ul><ul><li>Experts (asse...
3.9.2010 12th Hydra meeting – G. Rosenwald «Convention d’Indemnisation et De Recours des dégâts des Eaux, CIDRE and CIDECO...
3.9.2010 12th Hydra meeting – G. Rosenwald «Convention d’Indemnisation et De Recours des dégâts des Eaux, CIDRE and CIDECO...
3.9.2010 12th Hydra meeting – G. Rosenwald <ul><li>Economic neutrality is unknown, </li></ul><ul><li>No real benefits for ...
3.9.2010 12th Hydra meeting – G. Rosenwald Probable next evolution : Better classification of the claims situations. The F...
3.9.2010 12th Hydra meeting – G. Rosenwald <ul><li>Since 1985 the “Badinter law” forces the liability insurer to offer an ...
3.9.2010 12th Hydra meeting – G. Rosenwald «Convention d’Indemnisation et De Recours des Corporels IRCA (2003) »  Quick de...
3.9.2010 12th Hydra meeting – G. Rosenwald «Convention d’Indemnisation et De Recours des Corporels IRCA (2003) » Benefits ...
3.9.2010 12th Hydra meeting – G. Rosenwald <ul><li>Cost management issue : No real benefits for medium and small size comp...
3.9.2010 12th Hydra meeting – G. Rosenwald Probable next evolution : Fixed compensations based on a table depending on the...
3.9.2010 12th Hydra meeting – G. Rosenwald Direct settlement has a real sense if the quality of the settlement is a differ...
3.9.2010 12th Hydra meeting – G. Rosenwald 4/ Direct settlement and market of insurance Direct settlement and computerized...
3.9.2010 12th Hydra meeting – G. Rosenwald 4/ Direct settlement and market of insurance Direct settlement can succeed on a...
3.9.2010 12th Hydra meeting – G. Rosenwald Thank You
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Guillaume Rosenwald

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  •  MACIF = a French mutual insurance company created initially for managers and employees working in trade and industry.  MACIF was founded by a group of industrialists and tradesmen from Niort. Jacques Vandier (the first Managing Director and today Honorary Chairman) very quickly amended the company’s statutes to cover employees from these sectors.  Regionalisation : as a result of its success and of the growing number of members, MACIF regionalised its structures in order to guarantee both a sense of proximity with its policyholders and strong representation of these policyholders within the company. The Head Office is situated in Niort quite simply because the first major French mutual insurance companies were based in the town. MACIF’s founders were inspired by such models; moreover, two of these mutual companies helped MACIF to set up in Niort.  At the time, mutual companies shared the insurance market according to socio-professional categories. There was therefore little competition between them.
  • MACIF is proud to be an actor in the social economy sector.  As you may know, this sector comprises cooperatives, mutual companies and associations.  The main principles of social economy are : democratic power-sharing : “one person, one vote” solidarity within the group absence of individual profit MACIF is a company based on people and not on capital Its policyholders share common interests based on a project to which solidarity is the key. They have access to products and services which give them the best value for their money The company’s permanent funds belong to all its members and are indivisible Schematically, any surplus may be divided into three parts  First beneficiaries : the policyholders, through the quality of products and services offered, the competitiveness of prices and the innovative measures undertaken - Secondly, the company employees who are important contributors to MACIF’s success, Thirdly, the surplus is added to the company’s permanent funds
  • (Figures on 31/12/2009) Car insurance made up 80% of turnover a few years ago, and today represents 33%, despite the fact that MACIF has not lost any of its market share. This is a result of our deliberate decision to diversify our activities. This policy was adopted to answer our policyholders’ growing needs.
  •  The fact that we are able to offer banking services will encourage our customers to stay with our company (they have indicated that they would prefer to have one single point of contact for insurance as well as other services).  The banking profession is a complex one ; we felt it important to form a strategic alliance with MAIF and the Caisse d’Epargne Group.  MACIF and MAIF are making their own offer.  The Caisse d’Epargne Group contributes to the alliance through its banking expertise and specific services.  SOCRAM BANQUE covers the risk.  It is a major project. We are proceeding with caution so that we may offer the best possible quality of service.  55 MACIF branches, throughout France, were involved in the test period. By the end of 2010 or beginning of 2011, the whole commercial MACIF network will be involved. Our offer to our policyholders : is based on our mutualist principles (transparency, simplicity, fairness, safety, guidance) ; is far removed from the profitability models adopted by traditional banks (we seek to minimise costs for our policyholders, and part of the revenue generated by our banking activity will be paid back to them through their current account).
  •  For some of our major projects, we will be looking to join forces with companies close to ours, in order to share our strengths (as we have done in the past with Inter-Mutuelles Assistance and Socram for our assistance and credit activities, for example).  The most recent example of this is the reinforcement of our ties with MAIF and MATMUT. This mutualist partnership will allow us to increase our capacity for innovation and development. We would not be able to undertake certain initiatives on our own (such as helping those subject to dependency, for example).  This reinforcement of ties will also be of benefit to the mutualist model (as in a partnership of three we will have more influence on the insurance sector).  It should also further awareness of the social economy’s needs and specificities both at State level and within European institutions.  The initial areas of cooperation include purchases related or not to insurance, reinsurance, asset management, services to customers…
  •  For some of our major projects, we will be looking to join forces with companies close to ours, in order to share our strengths (as we have done in the past with Inter-Mutuelles Assistance and Socram for our assistance and credit activities, for example).  The most recent example of this is the reinforcement of our ties with MAIF and MATMUT. This mutualist partnership will allow us to increase our capacity for innovation and development. We would not be able to undertake certain initiatives on our own (such as helping those subject to dependency, for example).  This reinforcement of ties will also be of benefit to the mutualist model (as in a partnership of three we will have more influence on the insurance sector).  It should also further awareness of the social economy’s needs and specificities both at State level and within European institutions.  The initial areas of cooperation include purchases related or not to insurance, reinsurance, asset management, services to customers…
  • Guillaume Rosenwald

    1. 1. Guillaume Rosenwald Deputy Managing Director of insurance activities Macif ( France ) Friday, 3 September 2010
    2. 2. MACIF GROUP
    3. 3. From 1960 to the present day MACIF Macif established in motor insurance Chairman : Gérard Andreck Managing Director : Roger Iseli Head Office : Niort 8,900 employees 1960 First diversification – home insurance 1970 Regionalisation : with over 2.5 million policyholders, Macif is reorganised into 11 mainly autonomous geographical areas 1987 Macif is a group with diversified activities 2010 4.7 million policyholders French leader in car and motorcycle insurance
    4. 4. Commitment towards solidarity MACIF Macif is a mutual insurance company with no intermediaries  Macif is committed to the principles of social economy  It has no shareholders, no need for return on investment  Its policyholders insure each other mutually and are individually insured 
    5. 5. Breakdown of Group Turnover (2009) DIVERSIFIED ACTIVITIES 33 % Motor Health, Disability & Life 42 % 9 % Savings 10 % Home Other 6 % 5.7 Billion €
    6. 6. MACIF GROUP MAIN PROJECTS Start-up of our banking offer : 2 nd half of 2010 Strategic alliance Macif/Maif/Caisse d’Epargne Group An offer based on mutualistic principles
    7. 7. MACIF GROUP MAIN PROJECTS Creation of a partnership (SGAM) between Macif/Maif/Matmut : Sferen perpetuate the mutual insurance model reinforce our position and our competitivity In order to : Signature of the SGAM’s Articles of Association and Membership Agreements December 2009 Approval by the Insurance Companies’ Committee February 2010 Approval by the Office of Fair Trading June 2010
    8. 8. MACIF GROUP European partnership with mutuals
    9. 9. Direct settlement agreements in France Guillaume Rosenwald Deputy Managing Director of insurance activities, Macif France 12th Hydra meeting 3.9.2010
    10. 10. 3.9.2010 12th Hydra meeting – G. Rosenwald <ul><li>1/ Direct Settlement Agreement objectives. </li></ul><ul><li>2/ Requirements for an efficient and long-term agreement. </li></ul><ul><li>3/ Three examples in the French market </li></ul><ul><li>Motor insurance material damages (IRSA) </li></ul><ul><li>Home insurance water damages (Cidre – Cidecop) </li></ul><ul><li>Motor insurance light bodily injuries (IRCA) </li></ul><ul><li>4 / Direct settlement and market of insurance </li></ul>Direct settlement agreements in France - Index Pages 3 4 5 22
    11. 11. 3.9.2010 12th Hydra meeting – G. Rosenwald <ul><li>Improve claims settlement services, time, quality and innovation. </li></ul><ul><li>Simplify processes and saving operational costs. </li></ul><ul><li>Control of claims costs </li></ul>1/ Direct Settlement Agreement objectives
    12. 12. 3.9.2010 12th Hydra meeting – G. Rosenwald <ul><li>Economy : </li></ul><ul><li>Approaching cost neutrality, </li></ul><ul><li>Market statistics </li></ul><ul><li>Transparency /costumers. </li></ul><ul><li>Legal : </li></ul><ul><li>Respect of EU and national laws, </li></ul><ul><li>Taking account of precedents (simplicity and stability of precedents), </li></ul><ul><li>A very low demand to sue opponents. </li></ul><ul><li>Operational : </li></ul><ul><li>very good experts (assessors) in the topic, </li></ul><ul><li>high level of trust between the actors. </li></ul>2/ The requirement of an efficient and long term agreement
    13. 13. 3.9.2010 12th Hydra meeting – G. Rosenwald <ul><li>The “agreed accident statement” has been used by she insured since 1964, </li></ul><ul><li>First agreement of direct settlement set in 1968 (under pressure of the French government) </li></ul><ul><li>Experts’ (assessors) competence and honesty supervised by the Ministry in charge of transport </li></ul><ul><li>Clear and precise laws and precedents </li></ul><ul><li>1.7 million claims / year </li></ul>3/ Example 1 : Motor material damages Context
    14. 14. 3.9.2010 12th Hydra meeting – G. Rosenwald « Indemnisation et Recours des Sinistres Automobile, IRSA » Quick description Direct Settlement for all material damages Fully computerized exchanges and fixed compensation if 2 vehicles and damages < 6500 € Precise rules of recourse for all other situation (including pile up) 3/ Example 1 : Motor material damages Exhaustive codification of the accident’s situations Extensive statistical analyses …
    15. 15. 3.9.2010 12th Hydra meeting – G. Rosenwald « Indemnisation et Recours des Sinistres Automobile, IRSA » Benefits : <ul><li>Great value for the insured (quick and high level service) </li></ul><ul><li>Simplicity of computing for all the actors, </li></ul><ul><li>Insured self settlement by internet made possible for most of 2 vehicles accidents. (if developed by the insurer) </li></ul><ul><li>Great freedom of organization left to the insurance companies, full benefits for repair shops agreements </li></ul>3/ Example 1 : Motor material damages
    16. 16. 3.9.2010 12th Hydra meeting – G. Rosenwald « Indemnisation et Recours des Sinistres Automobile, IRSA » Limits : <ul><li>Economic neutrality is imperfect, </li></ul><ul><li>Applies correctly to cars, but trucks are over compensated and bikes are under compensated. </li></ul><ul><li>(Some insurers specialized in bikes stay out of the agreement) </li></ul><ul><li>Promote the settlement of micro claims </li></ul>3/ Example 1 : Motor material damages
    17. 17. 3.9.2010 12th Hydra meeting – G. Rosenwald « Indemnisation et Recours des Sinistres Automobile, IRSA » Conclusion Possible next evolution : Fixed compensation depending on the type of vehicles. 3/ Example 1 : Motor material damages IRSA is considered by the French Market as a success
    18. 18. 3.9.2010 12th Hydra meeting – G. Rosenwald <ul><li>Creation of “agreed accident statement” </li></ul><ul><li>Experts (assessors) corps largely heterogeneous. </li></ul><ul><li>Few and imprecise laws and precedents </li></ul><ul><li>Low satisfaction from the insured </li></ul><ul><li>1.2 million claims / year </li></ul>3/ Example 2 : Home insurance water damages Context
    19. 19. 3.9.2010 12th Hydra meeting – G. Rosenwald «Convention d’Indemnisation et De Recours des dégâts des Eaux, CIDRE and CIDECOP », Quick description : Direct settlement for damages < 1600 € No compensation between insurers For other cases : conduct of an assessment and organization of the recourse 3/ Example 2 : Home insurance water damages No computerized exchanges, No statistics
    20. 20. 3.9.2010 12th Hydra meeting – G. Rosenwald «Convention d’Indemnisation et De Recours des dégâts des Eaux, CIDRE and CIDECOP» Benefits : <ul><li>Simplicity for very small damages. </li></ul><ul><li>A sensible improvement of satisfaction from the insured. </li></ul><ul><li>More frequent management of the repair by the insurer. </li></ul>3/ Example 2 : Home insurance water damages
    21. 21. 3.9.2010 12th Hydra meeting – G. Rosenwald <ul><li>Economic neutrality is unknown, </li></ul><ul><li>No real benefits for medium damages because of the delay for drying off, </li></ul><ul><li>Allows poor reparation of the causes and generates repeated claims (especially in condominium) </li></ul>3/ Example 2 : Home insurance water damages «Convention d’Indemnisation et De Recours des dégâts des Eaux, CIDRE and CIDECOP» Limits :
    22. 22. 3.9.2010 12th Hydra meeting – G. Rosenwald Probable next evolution : Better classification of the claims situations. The French Market is largely unsatisfied with Cidre and Cidecop agreements. Economically, all the actors are quite sure to loose money … 3/ Example 2 : Home insurance water damages «Convention d’Indemnisation et De Recours des dégâts des Eaux, CIDRE and CIDECOP» Conclusion :
    23. 23. 3.9.2010 12th Hydra meeting – G. Rosenwald <ul><li>Since 1985 the “Badinter law” forces the liability insurer to offer an “honest” compensation directly to the victims. </li></ul><ul><li>Insurers receive automatically the statements made by police for bodily accidents. </li></ul><ul><li>More than 95 % of the bodily damages are compensated without trial. (about 99 % for lights injuries), </li></ul><ul><li>The medical experts are well organized and use a very clear method of physiological evaluation. </li></ul><ul><li>All courts use the same method of economic evaluation but level varies. </li></ul><ul><li>0.2 million claims / year </li></ul>3/ Example 3 : Motor insurance bodily damages Context
    24. 24. 3.9.2010 12th Hydra meeting – G. Rosenwald «Convention d’Indemnisation et De Recours des Corporels IRCA (2003) » Quick description : Direct settlement if partial disablement =< 5 % Fixed compensation if definitive disablement = 0 Recourse on real costs with a limit for other cases For other cases : conduct of an assessment and organization of the recourse No computerized exchanges since inception, Fully computerized exchanges since 1/1/2010, statistics tool in place 3/ Example 3 : Motor insurance bodily damages
    25. 25. 3.9.2010 12th Hydra meeting – G. Rosenwald «Convention d’Indemnisation et De Recours des Corporels IRCA (2003) » Benefits : <ul><li>Great value for the insured (quick and high level service). </li></ul><ul><li>Large freedom of organization left to the insurers. </li></ul><ul><li>Full benefits dedicated to the victim and their family’s help. </li></ul><ul><li>Strong management simplification for fully computerized insurers </li></ul>3/ Example 3 : Motor insurance bodily damages
    26. 26. 3.9.2010 12th Hydra meeting – G. Rosenwald <ul><li>Cost management issue : No real benefits for medium and small size companies who can’t afford to computerize bodily claims, </li></ul>3/ Example 3 : Motor insurance bodily damages «Convention d’Indemnisation et De Recours des Corporels IRCA (2003) » Limits :
    27. 27. 3.9.2010 12th Hydra meeting – G. Rosenwald Probable next evolution : Fixed compensations based on a table depending on the disability seriousness Big and fully computerized insurers are very happy with this agreement. Small insurers are “perplexed” 3/ Example 3 : Motor insurance bodily damages «Convention d’Indemnisation et De Recours des Corporels IRCA (2003) » Conclusion
    28. 28. 3.9.2010 12th Hydra meeting – G. Rosenwald Direct settlement has a real sense if the quality of the settlement is a differentiation in the competition. 4/ Direct settlement and the insurance market Direct settlement allows cuts of cost on the global amount (claims +management) But not always on each separate cost. Some statements …
    29. 29. 3.9.2010 12th Hydra meeting – G. Rosenwald 4/ Direct settlement and market of insurance Direct settlement and computerized exchanges are mainly profitable for medium and big size firms. But a dominant actor do no need such agreement … more statements …
    30. 30. 3.9.2010 12th Hydra meeting – G. Rosenwald 4/ Direct settlement and market of insurance Direct settlement can succeed on a market if : <ul><li>Most insurers manage themselves the claims (or by subsidiaries) </li></ul><ul><li>The market is shared between medium size companies. </li></ul>“ My own conclusions”
    31. 31. 3.9.2010 12th Hydra meeting – G. Rosenwald Thank You

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